Michigan Senate Panel Advances Comprehensive Privacy Bill on 5-3 Vote
The Michigan Senate Committee on Finance, Insurance and Consumer Protection cleared a comprehensive privacy bill during its meeting Wednesday on a 5-3 vote. A bipartisan group of senators recently introduced SB-359, or the personal data privacy act (see 2506060043). The legislation comes after Michigan failed to pass a similar consumer privacy measure last year (see 2412300043).
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“Personal data is a form of currency in the digital age, and data collectors and brokers take every opportunity" to take it "without our knowledge and to their advantage,” said Claudia Rast, former co-chair of the American Bar Association, who worked on the bill. The legislation, she added, places "control of our personal data in our own hands," and provides citizens with "the option to choose when and where we are willing to share that data with others."
One of the changes between last year’s legislation and SB-359 is the addition of a consumer's right to delete, said Sen. Rosemary Bayer (D), a bill sponsor.
The State Privacy and Security Coalition opposed SB-359. “The bill includes significant departures from the national consensus framework adopted by more than a dozen states,” which “create[s] operational uncertainty for businesses without delivering proportional gains in consumer privacy,” said the group's lobbyist, Willy Martinez.
For example, its data-minimization requirement, modeled after the Maryland Online Data Privacy Act (see 2504290048), “is vague, untested and has been rejected by every state that has considered it since Maryland passed it,” Martinez said.
The Michigan Chamber of Commerce and the Michigan Retailers Association also opposed the legislation during the meeting. Eight other groups, including the Consumer Data Industry Association and the Securities Industry and Financial Markets Association, were in opposition but did not testify during the meeting.
Consumer Reports supported the bill. “We've seen numerous privacy issues arise that underscore the importance of getting this legislation fully over the line,” such as concerns over Allstate sharing driver data (see 2501130047) and 23andMe’s bankruptcy sale (see 2506100051), said Matt Schwartz, Consumer Reports' policy analyst. However, Schwartz noted the bill fails to give individuals the right to hold a company accountable; only the state can do that. Still, Consumer Reports supports SB-359, "because it's a strong compromise that will provide critical protections for Michigan consumers."
The Electronic Privacy Information Center (EPIC) also supported SB-359. Caitriona Fitzgerald, EPIC deputy director, specifically praised the data-minimization language modeled after Maryland. Planned Parenthood also supported the bill but didn't testify.
After the vote, which was split along party lines, SB-359 was referred to the Senate floor. If passed, Michigan would join 20 other states that have comprehensive privacy laws, though six won’t take effect until later in 2025 or in 2026 (see 2501060066).